We've been using currency since 2000 B.C, but lately, its been going out of hand. The united states economy is relying on budget cuts and new bills to save itself from this economic crisis we've created. Im sure every country with a trade between the US and itself is also beginning to lose money.

It all works in a system, if the main trade system cant buy their products they begin to lose money, if after so long of them not buying enough of their product, they lose enormous amounts of money, which puts that country in a crisis aswell. So, why not just print more money and send it all over the country. By reading that sentence, your probably thinking,"What, is this guy a dumbass? Its gonna lower the amount of the dollar." But, just read on. After giving out the money and everyone's satisfied, the government multiplies tax rates so money could be straightened out. Then the government either gets rid of the money or helps any neighboring country.

This is just what I think should happen, Keep in mind I'm not the greatest thinker in the world.

Increasing the amount of money in a country does not increase the number of goods and services circulating in that country, the two factors which really determine the strength of the economy. Thus printing more money on top of anything will not strengthen the economy at all. People would still only be able to buy the same amount of stuff with this new printed money as they would have with "less" old money.

You just CANNOT print more money. If you even try it then you'll end up like Zimbabwe, with milk costing twenty billion and cigarettes a trillion dollars. The more money there is the more worthless it becomes

Your topic seems a bit more about how to fix the economy rather than currency, though you suggest currency as the solution to the economy.

Increasing the money supply lowers the demand, therefore requiring more money for the same purchase. That is the only way printing more money affects the economy. However, budget cuts don't save an economy in the first place, despite what bullshit Republicans preach. Some legislature also doesn't fix the economy either.

I will say that for one thing, you don't fix an economy. An economy fixes itself. There are natural highs and lows caused by capitalism and the free market system in the economy. The world is currently in a recession, which is typical low that occurs every decade or so, sometimes even less. Recessions result from small bubbles in the economy. However, every once and a while a really big bubble comes along, and when it bursts it causes a depression.

A depression is where the government needs to step in to speed up the process of fixing the economy. If a depression lasts long enough, consumers lose trust in producers which can create a very long slump in the economy. The government can fix this, in theory, by two ways. And they are polar opposites. One is increasing taxes, the other is decreasing taxes.

Each have their own benefits and costs. Decreasing taxes is a right wing approach, leaving more money with the consumer to make financial decisions to stimulate the economy. This, in theory, would work very well to end a financial downturn. However, in uncertain times, consumers are less willing to spend their money in fear of getting hit hard by the bad times. So really, this will more often stagnate the economy. However, it could work if the population don't act timid or scared.

Raising taxes, the left wing approach, gives more money to the government, who in turn should spend it on recovery operations, intended to provide jobs, goods, and services to their citizens. This is to be a very effective way to get out of a depression, as the government should have no qualms in spending money for the sake of their country. Again, this has it's downsde as the government does rack up debt for the country. However, if it spurs the country out of depression, the country should easily be able to pay off the debts incurred when the economy is catching up to speed again.


I personally supports a left wing approach to a recession/depression, though I recognize both sides have their pros and cons.